Getting Late

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Thursday was day 34 for the dollar’s daily cycle. It is getting late in its timing band to print a daily cycle low.

1 $$$

The daily cycle peaked on day 11 and has been in decline since. And the dollar has failed to break the declining trend line to signal a new daily cycle. The lower shadow left behind by the dollar today is a signal of a possible reversal. Also there is a bullish divergence developing on the True Strength Indicator which signals a reversal could be imminent. A swing low accompanied by a declining trend line break will confirm a new daily cycle.

weekly $$$

The weekly charts shows a clear and convincing break of the weekly trend line. We do not know how far this intermediate cycle might correct. However, the break of the weekly trend line has fulfilled the requirement for an intermediate cycle decline. There is also a corresponding Bearish Zero Line Crossover on the weekly TSI that we also see happen en route to an intermediate cycle low. Therefore there is a possibility that the impending daily cycle low could also mark an intermediate low as well.

A rallying dollar could be a concern to the Miners.

gdx

The previous intermediate rally by the Miners was halted by the 200 day MA. The Miners breached the 200 day MA today. We will need to keep an eye on the Miners once the dollar prints a cycle low to see if they get turned back here.

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